Rob Arnott Throws in the Towel on Hedge Funds

Rob Arnott, one of North America's most prominent financial analysts, thinks that the world's hedge funds are a bust and he's set out to prove it. An article published today by Fortune details the analysts study of the investment vehicles and his disappointing results.  Rob Arnott takes a look at some of the promises of hedge funds offered in their sales pitches.

The two cornerstones of the general argument for investing in a hedge fund is that the vehicles offer higher return at lower risk. That's the reason management fees tend...